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Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know

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Lowe's (LOW - Free Report) closed at $168.99 in the latest trading session, marking a +1.61% move from the prior day. This change outpaced the S&P 500's 0.04% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.28%.

Heading into today, shares of the home improvement retailer had gained 3.89% over the past month, outpacing the Retail-Wholesale sector's loss of 0.75% and the S&P 500's gain of 3.84% in that time.

Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. The company is expected to report EPS of $1.19, up 26.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.24 billion, up 20.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.71 per share and revenue of $88.48 billion. These totals would mark changes of +52.27% and +22.64%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LOW. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LOW currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that LOW has a Forward P/E ratio of 19.09 right now. Its industry sports an average Forward P/E of 14.96, so we one might conclude that LOW is trading at a premium comparatively.

Also, we should mention that LOW has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.


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